Our nonprofit (501c3) mission is to provide comprehensive primary health carealong with selective specialties and referral services to the region regardless ofindividual circumstances.

Valley Healthcare System, Inc.1600 Fort Benning Road, Columbus, GA 31903www.valleyhealthcolumbus.org Office: 706.221.2284

The Anthony (Tony) Whitehurst Campaignfor Valley Healthcare System

Building Bridges of Hope and Health Page 2 of 7

Valley Healthcare System, Inc.

Last spring, Valley Healthcare SystemInc. (“VHS” herein) of Columbus, Georgiaengaged Convergent Nonprofit Solutions,LLC of Atlanta to interview a wide varietyof Columbus area civic and communityleaders to determine perceptions andimpressions of VHS and its services. Allwere promised confidentiality, and as aresult the discussions were candid and inmost cases eye opening.

VHS hoped to find widespread support forour mission and health care services,because we were consideringimplementing a professionally directed fundraising campaign. We were hoping to enableexpansion of our community health services and a more rapid mortgage repayment plan, tobest enable the long-term economic viability for VHS in a rapidly changing health careenvironment.

However, the most frequently made comment during the 45 confidential interviews was that86% of those interviewed believed in our mission, but only 17% knew we existed! Yet,ironically, in 2014 VHS is celebrating our 20th year (1994-2014) of community health care servicein the Columbus area. We immediately realized we had work to do.

Accordingly, VHS is working to increase our community exposure through implementation ofbi-monthly newsletters, a speaker’s bureau, holding public events and conducting tours at ournew Columbus area headquarters. This facility opened in June 2012, includes 30,000 SF ofclinical space on 13 acres of land, and includes medical, dental, behavioral health, pharmacyand optical services, with increased services presently under consideration.

Established 20 Years Ago as a Local/Federal Partnership

Valley Healthcare System, formerly known as Community Health Center of South Columbus,opened its doors in August 1994. Incorporated as a 501(c)(3) nonprofit, our current name isreflective of the growth in geographic area served, along with growth in patients served andavailable treatment methodologies. Our nonprofit mission is to provide comprehensiveprimary health care along with selective specialties and referral services to the regionregardless of individual circumstances. In 2013, we served 9,708 patients with 31,946patient treatments in the Chattahoochee Valley. Along with our improved facilities in Columbus,

Dignitaries at the June 2012 dedication includedColumbus Mayor Teresa Tomlinson, City CouncilMembers, state Representative Calvin Smyre, andU.S. Representative Sanford D. Bishop, Jr.

Building Bridges of Hope and Health Page 3 of 7

we provide medical and dental treatments in Fortson and Talbotton, Georgia. Medical servicesat all facilities are provided by board certified and board eligible physicians on staff, plus a widevariety of other certified and licensed health professionals.

Notably, VHS is also a Federally Qualified Health Center (FQHC.) FQHCs are always localnonprofit, community owned, health care providers serving low-income and medicallyunderserved communities. Without this FQHC designation, Columbus would lose over $2million annually of federal health care funds, which provide direct, measurable benefits tomembers of our community. As the only FQHC in the region, VHS receives an annual federalgrant that helps offset 67% of costs of patient treatment. The remainder, $1,379,221 out of a$4,362,599 operating budget (FYE 2012), has to be made up from other sources of revenue.

Audience Served

The most current figuresindicate that 1.9million…that is one infour Georgians betweenthe ages of 19 and 64 arewithout healthinsurance. Thisdemographic representsGeorgians with incomelevels up to 138 % of thefederal poverty level – justbelow $16,000 for anindividual or $27,000 for afamily of three as reported by the Healthcare Georgia Foundation.

For adults at this income level, access to health coverage is limited across both racial andethnic groups. In fact, African American/Black and White Georgians in this income grouplack health coverage at similar rates – 45.5 % for Black Georgians compared to 46.3 %for White Georgians. Moreover, Hispanic/Latino Georgians are much less likely to havehealth coverage than other racial and ethnic groups. To assist with these patients, membersof the Valley Healthcare staff are available as interpreters in the medical, dental and billingservice areas.

Valley Healthcare is a valuable asset to Columbus and the Region. We serve an At-RiskPopulation of “Working Poor” which statistically constitutes an estimated 37 % of the GeorgiaPopulation. This demographic represents a patient share of 59% of those served by VHSin 2012. They are working members of our community with the average family of four including

Building Bridges of Hope and Health Page 4 of 7

two adults serving in one or more of the following industries: food service, construction,landscape and household services along with childcare and social workers.

Five Year Strategic Plan

As noted above, two years ago, in an effort to better serve our community, VHS constructed a30,000 SF medical facility located on 13 acres at 1600 Fort Benning Road. This $12.4 million

medical facility serves as an economic anchor in thecommunity and establishes for the first time aprofessional clinical environment for communityhealth. This facility hosts the Patient CenteredMedical Services of education outreach, familymedicine, general internal medicine, generaldentistry, children’s health, vision care,behavioral health, diagnostic laboratoryservices and pharmacy services. These servicesare provided to patients on a financial sliding scalebased on individual income. Due to our federalfunding, no one can be turned away for service fromValley Healthcare System!

Targeting Community Needs

After completing the feasibility study last spring, andimplementing our new awareness program, VHS isnow preparing to launch its’ Building Bridges ofHope and Health Capital Campaign, a bold five-year program establishing new partnerships toencourage new health initiatives while stimulatingnew economic growth in Columbus and theChattahoochee Valley. It is an ambitious program

building on our First 20 Years of Community Health Service and Celebrating ValleyHealthcare Systems Investment of $30 million of Health Care Dollars in the ColumbusCommunity.

As a FQHC, we are required to submit an annual Uniform Data System Report (UDS) to theBureau of Primary Health Care of the US Department of Health and Human Services. Thisreport tracks patient care in our community on a monthly and annual basis. Currently, workingwith the data provided through the UDS report, we can document that over the past four yearsVHS has recorded a 38 % increase of patients and 37 % increase in number of patienttreatments. Today, the increased need for community health services are in the areas of

To whom it may concern,

I’ve been a patient at Valley since2003. I was referred to them by adoctor at the Medical Center on oneof my stays, because of my financialsituation and no insurance. I sufferfrom severe COPD, chronicbronchitis … depression and highblood pressure.

Valley provides me access todoctors and medications thatotherwise I could not afford. Igreatly appreciate the kind andcaring people that I have grown todepend on … many of whom goabove and beyond the call of duty.

I pray that Jesus will acknowledgetheir many acts of kindness bycontinuing His works through themfor they are truly some of God’sangels!

So Very Blessed,

(Name withheld)

Building Bridges of Hope and Health Page 5 of 7

Women’s Health, Pharmacy, and Children’s Health Service. This means that wecurrently have a demand for more physicians and licensed support staff in these areasto serve our clients and their needs. By addressing these needs, a projected 17,179patients will be served annually in our community … more than doubling the number of patientsserved annually based upon current patient load.

Who is this Program’s Target Audience?

The goal of our new Children’s Health Program is to promote the development and use ofinnovative approaches that will support the family centered, preventive and proactive plan forthe well-being of children in our community. Our focus population includes children wholack access to care because of funding, transportation and language barriers. Currently,VHS serves more than 2,100 children between the ages of 0-19. It is estimated that over 61%of low income children and their families are without a usual source of health care services inour service area.

The Health Care Needs of Children in Our Community

The health of children depends at least partially ontheir access to health services. Accordingly, theForum on Child and Family Statistics identifies keynational indicators of well-being. Health care forchildren includes physical examinations, preventivecare, health education, screening, immunizationsand sick care. The goal is to have a usual source ofcare that facilitates the timely and appropriate useof these services.

Regional growth planners for many years havevoiced concerns regarding the availability and abilityof primary care providers. Clinician supply/deficitreports show family medicine and pediatric servicesare among five service lines having both a physiciandeficit greater than 10 % and having over 33 % ofits physicians over the age of 55. Access to care bypersons covered by Medicaid, Tri-Care or those whoare uninsured is hampered by the limited number ofclinicians who accept those payer sources.

Valley Healthcare System believes it can meet this challenge. We propose to enhance ourservices and meet the demand of this special population by adding two additional child

The new Children’s Health Program willbring together the specialties of medical,dental, behavioral, pharmacy andoptical…all under one roof!

Building Bridges of Hope and Health Page 6 of 7

health clinicians, one behavioral health specialist and two clinical support staff to ourexisting multidisciplinary, multilingual service model of care.

In addition, we will increase our current technological capabilities for making diagnoses.Working within the Georgia Department of Community Health’s (DCH) Telemedicine andTelehealth Policies, this will transform our usual face-to-face delivery of primary andspecialty care beyond the four walls of our clinics. The goal is to work with this statewidenetwork utilizing technology and working with physicians to diagnose patient centered medical

and behavioral health illnesses.

How do you Measure ProgramSuccess?

Through these efforts, over the next two years, VHSanticipates an additional 3,131 children will meetthe key indicators of well-being through theirexperience in our comprehensive, patient centeredmedical home. In addition, as per the organization’sStrategic Plan, Goal Three: Financial Viability, (SeeAppendix) a portion of the generated revenue willgo toward retirement of the Bridge Loanestablished for construction of our newHeadquarters. This loan constituted 23% of the$12,406,816 total project cost and enabled earlycompletion of our new state of the art headquartersin Columbus.

How does the 5 Year Plan SaveCommunity Health Care Dollars?

Georgia Association of Primary Health Care indicatesthat regular users of community health centers are farless likely to go to an Emergency Room for a nonlife-threatening event. In 2012, VHS saved ourcommunity $1,179,349 in ER treatments. Inaddition, we documented an additional savings of$3,822,816 in Hospital treatments. We treat chronicdiseases, diabetes, and hypertension with a sliding

financial income based fee schedule. This policy ensures that the patient has a financialcommitment to their treatment while at the same time receiving the care they require during a

Dear Mrs. Lang,

Having kids with medicalconditions was a worry for me atthe time I relocated to Columbus,Georgia from Orlando, Florida.

During the process, I applied toMedicaid because I amunemployed at this time. ValleyHealthcare gave me an affordablesliding fee that I was able toafford.

Since my kids arrived here, theirmedical condition has beenimproved and I am able for thefirst time to be sure that they arein good hands. Dr. Bennett andNurse Melvina are amazing andthe best of all they care abouttheir patients.

God Bless you,

(Name withheld)

Building Bridges of Hope and Health Page 7 of 7

time of need. In total, VHS can document saving our community $5,002,165 in communityhealthcare dollars over 12 months in 2012 (See Appendix: ROI Brief).

Valley Healthcare also contributes to the community and local business. Just like any otherbusiness, VHS employs people and purchases goods and services. Each dollar paid inearnings to health care staff is spent for living expenses, rent, food, etc., at local businesses.In turn, those businesses have employees, who then spend their earnings on other goods andservices, and so on. In 2012, this “ripple effect” caused an overall economic impact of123 jobs and an estimated $7,873,845 worth of commerce in our community.

In Summary….

Our future successes will build upon the public / privatepartnerships established over 20 years ago. Working ourmission to serve …regardless of individualcircumstances, we are, for the first time in our history,looking to partner with additional individuals, businessleaders, and foundations. We invite you to join us in thisinitiative targeting community service areas of health care,community/ economic development, and serving theeconomically disadvantaged.

Together, WE CAN make health care work inColumbus and the Chattahoochee Valley Region.

Phillip W. Aldridge, Board Chair Sarah E. Lang, CEOValley Healthcare System, Inc. Valley Healthcare System, Inc.

Attachments:

Five Year Pro Forma IRS Letter of Determination 501c3

Budget Narrative

Revenue FY 2014 FY 2015 FY 2016 FY 2017 FY 2018Program Income 803,136 1,655,244 2,119,534 2,543,441 2,619,744Capital Campaign 200,000 200,000 200,000 200,000 200,000

Total Revenue 1,003,136 1,855,244 2,319,534 2,743,441 2,819,744 A. Personnel Personnel 634,040 1,058,080 1,089,822 1,122,517 1,156,193

Total Personnel 634,040 1,058,080 1,089,822 1,122,517 1,156,193

B. Fringe Benefits FICA 48,504 80,943 83,371 85,873 88,449State Unemployment 13,315 22,220 22,886 23,573 24,280Worker's Compensation 2,219 3,703 3,814 3,929 4,047Health, Dental, Life ($5354 per full-time FTE) 16,062 37,478 39,352 41,319 43,385Retirement Contribution - 3% of salaries 19,021 31,742 32,695 33,676 34,686

Total Fringe Benefits 99,121 176,086 182,119 188,369 194,847Total Personnel & Fringe Benefits 733,161 1,234,166 1,271,941 1,310,886 1,351,039

C. Travel Medical- $3000 per physician FTE 6,000 12,000 12,000 12,000 12,000- $1500 per midlevel FTE 0 3,000 3,000 3,000 3,000-Other clinical (UDS, PCCN, GAPHC, Local) 3,000 7,500 7,725 7,957 8,195- Local Travel 3,750 3,863 3,978 4,098 4,221Behavioral Health 3,000 3,000 3,000 3,000 3,000

Total Travel 15,750 29,363 29,703 30,054 30,416

D. Equipment Equpment (Medical equipment) 0 50,000 52,500 73,500 80,850

Total Equipment 0 50,000 52,500 73,500 80,850

December 2013 Page 1 of 3

Valley Healthcare System, Inc.Building Bridges of Hope and Health

Capital CampaignFive-Year Projection of Revenue and Expenses

Valley Healthcare System, Inc.Building Bridges of Hope and Health

Capital CampainFive-Year Projection of Revenue and Expenses

E. Supplies Medical / Lab ($4.00 per encounter in year 1; increased accordingly in subsequent years.) 28,188 65,232 85,568 88,135 90,780Administrative ($1.65 per encounter in year 1; increased accordingly in subsequent years.) 11,628 26,908 35,297 36,356 37,447

Total Supplies 39,816 92,140 120,865 124,491 128,226

F. Contractual Administration (Audit Fees, Payroll Processing, etc.) 3,000 6,000 6,180 7,416 9,641Provider backup (10 days at market rate for locum tenans plus travel. Fees are $125 per hour and travel $250 per day) 20,000 52,500 54,075 64,890 77,868Capital Campaign Fees & Expenses 100,000 100,000

Total Contractual 123,000 158,500 60,255 72,306 87,509 G. Construction H. Other Training - Medical 9,000 18,000 18,540 19,096 19,669Insurance Pro. Off. 7,000 14,000 14,700 20,580 21,609Printing 2,500 2,575 2,652 2,917 3,005Marketing 15,000 20,000 40,000 50,000 50,000Dues & Licensure 4,000 12,000 12,360 13,596 14,004MIS (includes EMR, Hardware, Software, Maintenance, and Training) 36,000 77,000 79,310 95,172 98,027Uniforms (2 per year, per employee) 2,400 2,472 2,546 3,055 3,147Bridge Loan Reduction 0 120,000 500,000 500,000 500,000Reserves Build-Up 300,000 300,000

Total Other 75,900 266,047 670,108 1,004,417 1,009,461

Total Expenses 987,627 1,830,216 2,205,373 2,615,655 2,687,501

Net Income (Loss) 15,509 25,028 114,161 127,786 132,243

December 2013 Page 2 of 3

Budget Assumptions

RevenueYear 1 – Obstetrician, Family Practice Physician and Clinical Psychologist.Since these providers are coming into a situation with a full patient panel they are able to produce immediately. Their productivity is based on an expected 90% in year one.

Year 2 – Family Nurse Practitioner (FNP), Internist, Pediatric Nurse Practitioner (Ped. NP), and Pediatric Chief of Staff (Ped. COS).Providers coming on board in year two have an expected productivity of 50% of the national standard; 80% in year two and 90% in year three.

Capital campaign commitments – pledges shown are in their anticipated year of receipt. One-time gifts are recorded in year one.

ExpensesExpenses are projected based on historical cost of providing service. Providers receive a contractual allowance for travel, training, and CME.

Supplies are based on the average cost of supplies per visit.

Contractual expenses are the anticipated increase in the cost of the annual audit for additional services and increased revenue. Provider backup covers the cost of locum tenans who provide service for providers on vacation.

Other expenses such as printing, dues and licensure, MIS, and uniforms are based on historical costs.

Bridge loan reduction will build until it reaches the $500,000 mark then will maintain until debt if retired.

A build-up of reserves begins after year three with $300,000 per year increasing once debt is retired. Six months of reserves is the industry standard for VHCS that will be $2.4 Million.

Building Bridges of Hope and Health Capital Campaign 1600 Fort Benning Road, Columbus, GA 31903 PBrennnan@valleyhealthcolumbus.com www.ValleyHealthColumbus.com 706.221.2284

Celebrating 20 Years of Service

in the Columbus Region 1994–2014

Board of Directors

Mr. Phillip W. Aldridge, Board Chair, VHcS Synovus Financial Corporation

Ms. Virginia Dickerson, Board Vice-Chair, VHcS Muscogee County School District U.S. Civil Service (Retired)

Ms. Mattie Wright, Secretary. VHcS Muscogee County School District (Retired)

Mr. Mike Mayhew Treasurer, VHcS Director of Sales Automated Business Machines

Ms. Karon Bush West Central Health District Georgia Department of Public Health

Mr. Esteban Omar Ibanez TSYS

Mr. Gary Johnson

Owner, Ace Hardware

Mr. Joseph Lefcourt Owner, Lefcourt Enterprises, LLC

Mrs. Dorothy Mabry Lawton Public School District (Retired)

Mr. J. Keith Pellerin

Vice President, Product Management & Innovation Aflac Worldwide Headquarters

Ms. LaShun Scott, Chaplin

Hospice & Palliative Care Liaison Columbus Hospice

Mr. Ronald J. Smith

Community Banking & Market President, Regions Bank

Building Bridges of Hope and Health Capital Campaign 1600 Fort Benning Road, Columbus, GA 31903 PBrennnan@valleyhealthcolumbus.com www.ValleyHealthColumbus.com 706.221.2284

Valley Healthcare System, Inc.

Founding Officers 1994:

Bishop James Swanson

Dr. James Cross

Audrey Hollingsworth

Al Johnson

John Paul Marvets

Mattie K. Wright

Kenneth Suddeth

Elizabeth Sloan

Milton Ortiz

Tommy Sands

Judge Albert Thompson

Rannie Lewis

11/18/2013 1600 Benning Road, Columbus, GA 31903 # Main Office 706.322.9599 # www.ValleyHealthColumbus.org Page 1 of 2 Valley Healthcare System, Inc. is a 501c3 Organization

Fact Sheet

Established: 1992 Mission Statement: To provide comprehensive primary healthcare, selective specialties and referral services to the population of the Chattahoochee Valley area regardless of individual circumstances. Vision: To be the superior multi-specialty primary healthcare organization utilizing an outstanding team of healthcare professionals and support personnel by delivering accessible, affordable, cost effective, prompt customer responsive service. Founding Officers: Bishop James Swanson, Dr. James Crosse, Audrey Hollingsworth, Al Johnson, John Paul Marvets, Mattie K. Wright, Kenneth Suddeth, Elizabeth Sloan, Milton Ortiz, Tommy Sands, Judge Albert Thompson and Rannie Lewis. History: Valley Healthcare System formerly known as Community Health Center of South Columbus opened its doors August 1994. This name change is reflective of the growth in our size and the services that we provide to the community. In June 2012, Valley Healthcare increased their offerings by offering expanded pharmacy and optical services. This enabled us to better serve the patient’s needs while diversifying operating revenues. The new facility at 1600 Fort Benning Rd, Columbus, GA 31903 includes 30,000 sq. ft. of healthcare space on 13 acres of land. Multi-Disciplined and Patient Centered Medical Services: Outreach, Children, Women, Adult, Behavioral Health, Pharmacy, Vision, Laboratory, Dental, Extractions. For additional details: www.ValleyHealthColumbus.org FQHC: Valley is the ONLY Federally Qualified Health Center (FQHC) in the Chattahoochee Valley Region. FQHC a federal reimbursement designation used by the Bureau of Primary Health Care and the Centers for Medicare and Medicaid Services of the United States Department of Health and Human Services. Without this designation, Columbus would lose over $2 million annually of federal funds. Serving & Saving the Community: In 2012, Valley served 8,877 patients and provided 26,000 patients visits, with board certified and board eligible physicians. Health centers nationally save the health care system over $24 billion annually including $6 billion in savings to the Medicaid program. That works out to a savings of $1,263 per patient per year.*

Location and Contact Information: Corporate Office 1600 Fort Benning Road, Columbus, GA 31903; Main Office: 706.322.9599; Main Fax 706.322.9567 Service Delivery Sites

Valley Health Columbus, 1600 Fort Benning Road, Columbus, GA 31903. Main Office: 706.322.9599 Service Hours: Monday thru Friday 8:30 a.m. to 5:30 p.m. Saturdays – Every 2nd and 3rd Saturday of each month 8:00 a.m. to 1:00 p.m.

Valley Health Fortson – Medical/Dental 94 McCrary Road, Fortson, GA 31808, Main Office: 706.987.8216.Service Hours: Monday thru Friday 8:30 a.m. thru 5:30 p.m.

Valley Health Talbotton – Medical/Dental 341 North Washington Avenue, Talbotton, GA 31827 Medical Office: 706.665.2585; Dental Office: 706.665.2139; Service Hours: Monday thru Friday 8:30 a.m. to 5:30 pm.

* Source: National Association of Community Health Centers, Cost Effectiveness of Care Provided at Health Centers, Fact Sheet, December 2011

Building Bridges of Hope and Health Celebrating 20 Years (1994-2014) and $30 million of Community Health Care Service

2/3 Summary Five Year Strategic Plan 2014 - 18

The mission…of Valley Healthcare System is to provide comprehensive primary healthcare, selected specialties and referral services to the population of the Chattahoochee Valley region regardless of individual circumstances.

Core Values: Compassion Collaboration Cooperation

Integrated Health Excellence/Integrity Community Based

Mutual Respect Responsive Delivery Accountability

Fiscal Responsibility Patience Centered Teamwork

Goal One: Educate the public on health care issues and practices. Action Steps:

1. Provide twelve family events annually in the community that educate the public on healthcare issues and increase patient awareness and treatment options.

2. Seek out connections in the community like the current work with Enrichment Services Head Start Program that provides behavioral health services to 11 centers, 54 classrooms, and 1,000 students.

Goal Two: Provide education and research programs in conjunction with higher education. Action Steps:

1. Build on our relationships with Auburn for behavior health and Mercer on pediatrics and family practice clinical rotations for medical students.

2. Continue to work with Columbus State University School of Nursing and other institutions to offer curriculum based programs for students studying to become Nurse Practitioner (NP’s) and Physician Assistants (PA’s).

3. Pursue additional relationships with institutions like Miller Motte Technical College for students working towards credentials as a Certified Medical and Dental Assistants.

Goal Three: Ensure operational effectiveness and financial viability. Action Steps:

1. Establish a Capital Fund to increase service areas of Child and Adolescent Health and Women’s Health addressing increased patient needs and generating new revenues.

2. Develop a business plan that will build and explore additional opportunities to diversify revenue streams complementing federal grants for indigent and community health care and education.

Goal Four: Serve as an anchor for economic development in Columbus by contributing directly to economic growth and stability of the region along with quality of life. Action Steps:

1. Become a Level Three federally recognized Patient-Centered Medical Home (PCNH) where the model of care is designed to enhance access and continuity of care by a coordinating team of health professionals and empowering the patient to be a partner in their own care.

2. Develop a marketing plan incorporating a newsletter to enable implementation of new initiatives in education and execution of a business plan.

Organizational Value Proposition®

Octobert 2013

Convergent Team, Attached is your Campaign ROI Report. In this case, it is presented as an Organizational Value Proposition®, which demonstrates the different ways in which the value of the project and/or the organization can be viewed. The report should not only help in raising the sights of the campaign in general, but can also be used to make specific solicitations more effective. It is intended to be an internal document, with the information expected to be integrated into your Case for Investment and individual solicitations. It is not designed to be distributed as a stand-alone collateral piece. Only the Convergent team is receiving copies of this report, and I will leave it to your discretion as to how you present it to the client. All of the inputs used to produce the report are conservative, so the actual impacts are often greater than those listed. It is designed to be self-explanatory, but as always, if you have any questions, don’t hesitate to contact me. I want you to feel confident that you fully understand it before you have any discussions with the client or prospective investors. Thank you for your efforts to make this project a success,

Contact: Tom Ralser, Principal

tralser@ConvergentNonprofit.com

(800) 886-0280

1

Organizational Value Proposition®

Levaraging of Dollars

Downstream Impact

Serving At-Risk

Population

Entity Impact

Delivery Efficiencies

Increased Capacity

Areas of Value

2

A

A good program address all three spheres of value VHS provides value in all three of the possible categories where value is created, the three S’s of value:

Types of Value

3

This report attempts to put Valley Healthcare Systems (VHS) Campaign in a new light that quantifies the value of the wide range of outcomes produced by the project. This often moves the discussion of the funding of the project from a purely emotional appeal to one of investment in results. This also positions the project as a community asset, which can increase the number of possible motivations for people and businesses to invest. It is not meant to be a definitive economic impact study, but a tool to be used in funding situations. The report is organized in to six broad areas of value that reflect the impact of the organization itself, as well as the area of increased capacity, delivery efficiencies, serving an at-risk population, downstream impact, the leveraging of dollars.

The result of this analysis is termed an Organizational Value Proposition®, which is broader in scope than the phrase “return on investment,” and focuses on the value of the outcomes being delivered by the program. An Organizational Value Proposition® first defines the broad areas of value, and then uses the best information available to translate that value into terms that are understandable and appreciated by the intended audience.

Overview

4

This report makes extensive use of economic multipliers, which quantify the cumulative “ripple effects” of an economic activity. The multipliers used in this analysis are derived from an 2009 report produced by the Georgia Association of Primary Health Care, using IMPLAN 3.0 software and county-specific data. Multipliers were kept constant to facilitate continuity across various reports. Whenever possible the same methodology was incorporated and updated using 2012 data. Some information may be different than the 2012 Georgia Association of Primary Health Care report due to differences in methodology. Regular users are defined as 84 percent of total users, according to Access Granted, 2007. All financial inputs specific to the area, including wage levels and company examples, were supplied by the Client. If specific data is not referenced in the Endnotes, it was supplied by the Client.

Methodology

5

The organization itself impacts the community, as do the people it employs and the

opportunities it creates

Organization Impact VHS impacts the area just as any other business entity that employs people and purchases goods and services. Each dollar paid in earnings to VHS employees is spent for living expenses, rent, food, etc., at businesses who also have employees, who then spend their earnings on other goods and services, and so on. This is often referred to as the ripple effect. The following impacts, which only reflect the hard dollars expended, will underestimate the true value of the services provided by VHS. Using 2012 information provided by VHS, and applying 2009 multipliers derived from the Association of Primary Health Care report, the organization has the following annual impacts: Earnings Impact

As the wages paid by VHS are circulated throughout the area, their impact becomes substantially larger. The payroll of $3,400,568 per year is estimated to have a $6,033,795 annual earnings impact. In other words, each dollar VHS pays in salary causes an additional $.65 in earnings to be generated in the community.

Employment Impact

Each job at VHS has the effect of influencing the need for other jobs at area businesses. VHS’s full time equivalent of 72 people is estimated to stimulate the need for 51 additional jobs in the area.

Overall Economic Impact

The total administrative expenditures of VHS can also be used to estimate their total economic impact. Annual total operational spending of $4,916,994 per year is estimated to create $7,873,845 worth of commerce (final demand) in the area.

Entity Impact

6

The new facility will allow more visitors to be served The Facility experienced a 38 percent increase in patients and a 37 percent increase in visits since 2010. Patients

Hospital Visits

# of

Patients Difference % Increase

2010 6,427

2011 7,803 1,376

2012 8,877 1,074 13.8%

2010-2012 2,450 38.1%

# of

Visits Difference % Increase

2010 18,884

2011 22,869 3,985 21.1%

2012 25,948 3,079 13.5%

2010-2012 7,064 37.4%

Increased Capacity

7

The VHS provides a substantial cost savings to the area and its residents through

the efficient delivery of needed services

There are many ways to describe the efficiency of delivery of VHS. Using methodology from a 2009 Georgia Association of Primary Health Care report, and updating it with 2012 data, these savings include the following: 1. Emergency Room Cost Savings: ER visits avoided

2. Hospital Visit Cost Savings: hospital visits avoided

2012

Estimated "regular" VHS patients 7,457

Non-VHS patient's chance of an avoidable ER visit 38%

VHS patient's chance of an avoidable ER visit 26%

Number of VHS patients avoiding an ER visit 895

Average cost of ER visit 1,318$

Total Cost Savings 1,179,349$

2012

Estimated "regular" VHS patients 7,457

Non-VHS patient's chance of an avoidable hospital visit 8%

VHS patient's chance of an avoidable hospital visit 5%

Number of VHS patients avoiding a hospital visit 224

Average cost of hospital visit 17,089$

Total Cost Savings 3,822,816$

Delivery Efficiencies/Cost Savings

8

These two categories of value alone represent a 2012 return on investment of 102 percent as shown below:

2012 Budget (total operating revenue) 4,916,994$

ER savings ( 895 visits avoided) 1,179,349$

Hospital Visit Savings (224 visits avoided) 3,822,816$

Combined Savings 5,002,165$

2012 ROI of Combined Savings 102%

9

Proactive healthcare allows workers to keep working

Knowing that quality healthcare is available allows workers to be proactive in their awareness of their own health, which naturally allows potentially serious situations to be addressed before they necessitate a visit to the emergency room as their primary point of entry into the healthcare system. To estimate typical wages for patients of VHS, the following job categories were used, yielding an average wage rate of $8.96 per hour:

Using an average of $8.96 per hour, and assuming only two 8 hour days of work per year are saved because of proactive healthcare, the following annual opportunity costs are avoided:

Food Service Workers 8.89$

Building and Cleaning and Maintenance Occupations 9.04$

Personal Care and Service 8.95$

Average 8.96$

Columbus GA WagesMay, 2012 Bureau of Labor Statistics

Number of 2012 VHS patients 8,877

% estimate of working poor 59%

# of working patients 5,237

Average median wage 8.96$

Hours saved by two days of production (8 hours per day) 16

Total wages saved per patient 143$

Total potential area wages saved 750,838$

Downstream Impact

Impact

10

VHS serves those that might otherwise not get quality healthcare VHS serves an estimated 3.4 percent of entire Columbus area population, and two-thirds of these are uninsured.

Having quality healthcare available to those uninsured workers makes it easier to attract workers and keep a stable workforce.

Population Served weight

Uninsured 4,813 67%

Medicaid 1,740 24%

Privately insured 620 9%

7,173 100%

Serving At-Risk Population

11

The Columbus area is getting a needed, state-of-the-art facility

for cents on the dollar The new $12 million facility is being financed to a large extent by outside dollars. Approximately $3 million in local money will be leveraged by a factor of 400 percent. In 2011, capital improvements totaled $1.14 million. In 2012, that figure jumped to over $7.59 million, a 564 percent increase.

Leveraging of Dollars